Lesson 5: Risk Management 101 – The #1 Skill That Separates Traders from Gamblers

🟦 Lesson 5: Risk Management 101

Here’s the truth: most beginners lose money because they take oversized risks and let emotion drive decisions.

⚠️ Why Traders Lose:

• Using too much leverage
• Not using stop-loss orders
• Trading without a plan

💡 What You Should Do:

• Use a stop-loss on every trade
• Only risk 1–2% of your account per trade
• Plan your trades and trade your plan

🧾 Formula to Remember
Risk = (Stop-loss in pips × Pip value × Lot size)

🎁 Download our Risk Management Cheat Sheet as part of the Forex Starter Kit